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La Porte budget presentation warns five-year drawdown, asks council to curb CIP spending
Summary
City accountant Michael told the council the city added $13.7 million to fund balance last year but forecasts drawdowns over the next five years and urged caution on capital projects; staff asked council to consider 11 new positions in next year nd up to 18 if Shore Acres consolidates.
City accountant Michael presented a conservative outlook Wednesday, telling the La Porte City Council the city posted a $13.7 million net income in the most recent audited year but expects the balance to be consumed gradually over the next five years.
"We had a net income of 13,700,000," Michael said, adding the current forecast shows the fund balance being drawn down in coming years. He urged the council to "dial back" discretionary capital improvement projects to preserve reserves and warned that the utility fund will continue to rely on a planned $1,900,000 transfer from the general fund.
Why it matters: Michael said the city faces pressure from slower interest earnings, economic uncertainty and the prospect of state tax changes that could reduce property tax revenue. Staff presented requests to add positions across departments — about 11 new roles without consolidation and up to 18 if the nearby Shore Acres area joins La Porte — noting personnel costs will materially affect future budgets.
Council reaction tended toward caution. Members asked staff to return with tighter cost estimates and to consider staging capital projects. Staff said the five-year forecast will be updated as more concrete figures are available and that final budget decisions will be made in the August budget process.
